The titular "Iron Island" is a huge rusting tanker off the Iranian coast in which dozens of homeless families have found shelter and formed a community. The head of the ship, Captain Nemat tries to balance finding jobs, oil, food and even husbands for the poor and struggling families. He controls the "residence" with absolute power which comes to violent crisis when two young lovers attempt to defy his authority and from the increasing pressure of business interests seeking to seize the ship and evict the residents.